Correlation Between CF Industries and 67021CAS6
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By analyzing existing cross correlation between CF Industries Holdings and ES 455 01 JUN 52, you can compare the effects of market volatilities on CF Industries and 67021CAS6 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CF Industries with a short position of 67021CAS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and 67021CAS6.
Diversification Opportunities for CF Industries and 67021CAS6
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CF Industries and 67021CAS6 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and ES 455 01 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES 455 01 and CF Industries is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CF Industries Holdings are associated (or correlated) with 67021CAS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES 455 01 has no effect on the direction of CF Industries i.e., CF Industries and 67021CAS6 go up and down completely randomly.
Pair Corralation between CF Industries and 67021CAS6
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to under-perform the 67021CAS6. In addition to that, CF Industries is 2.22 times more volatile than ES 455 01 JUN 52. It trades about -0.2 of its total potential returns per unit of risk. ES 455 01 JUN 52 is currently generating about 0.13 per unit of volatility. If you would invest 8,377 in ES 455 01 JUN 52 on November 28, 2024 and sell it today you would earn a total of 191.00 from holding ES 455 01 JUN 52 or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
CF Industries Holdings vs. ES 455 01 JUN 52
Performance |
| Timeline |
| CF Industries Holdings |
| ES 455 01 |
CF Industries and 67021CAS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and 67021CAS6
The main advantage of trading using opposite CF Industries and 67021CAS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, 67021CAS6 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 67021CAS6 will offset losses from the drop in 67021CAS6's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| 67021CAS6 vs. Weibo Corp | 67021CAS6 vs. Pinterest | 67021CAS6 vs. Iridium Communications | 67021CAS6 vs. Integral Ad Science |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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